5 Problems In The Music Industry That Blockchain Technology Aim To Solve

Do you know how difficult it was to listen to the latest release of your favorite singer? You had to take a ride to your nearby music store and get a copy of the latest album. Sometimes, the local stores won’t even have them until several months after release. Nowadays, you can listen to new releases of your favorite artists with just a click of the mouse. Music can be easily downloaded and copied from anywhere.

Piracy has increased and it has become very difficult to protect the music industry from the malicious force of piracy. Though music is a billion dollar industry now, lots of money are being lost because of piracy. Many nightclubs are playing music without giving any royalties to the artists. These problems and others related to the music industry can be solved using the blockchain technology.

Blockchain Technology Applications For The Music Industry

Lack Of Transparency

An artist works very hard to release an album. A lot of money is invested as well. But as the albums are sold through various distribution channels, lack of transparency becomes evident. It is reported that the artists end up getting only 20% to 40% of the total earnings from their album. That’s why you will find many artists not using streaming services like Apple Music, Google Play Music, Spotify, etc. Blockchain technology can help in this regard. It can keep an unaltered record of all the music permanently in cryptographic form. No third party is needed to control the information. This will result in transparency in the music industry.

Royalty Payments

Smart contracts using blockchain technology will help in providing automatic royalty payments to the artists. This ensures that everyone involved in creating the music receives their shares of royalties. No third party is required to process that transaction or keep records of it. The blockchain technology will allow royalties to be split among the performers, songwriters, producers, and everyone else involved. The complex copyright environment will become very simple with the blockchain technology.

Piracy

With the blockchain technology, you can record your files containing the lyrics, notes, licensing, etc. securely. These records will be permanent and any unauthorized access to these files won’t be allowed. The contents will be encoded. So, no one will be able to record, copy or distribute music without paying the royalties to the deserving people. This way piracy can be prevented.

Artists’ Income

The major music hubs take away most of the profits from the artists. They also charge a lot from their fans for listening to the music of their favorite artists. As a result, the aspiring artists suffer as they are not getting their legitimate payment. This problem can be solved by using blockchain technology for music streaming. This technology is now used by a company named OPUS.

This company provides all the money they make by selling or downloading music to the artists. The fans can also get more access to music without any hassle. They can easily access any music from anywhere. An app called ‘BitTunes’ lets the artists get their share of the revenue every time their music is downloaded. The fans also get rewarded if they share the music with others and influence them to download as well. The BitTunes is a bitcoin-based network and offers great transparency in music selling.

Funding

It can be tough getting the fund to create your music. Not every artist has the money to launch their album. Blockchain technology opens the opportunity for crowdfunding. So, once you have a project up in the system, anyone can invest in it and get the respective returns automatically when the album releases. Investing in the initial coin offering (also known as ICO) is a great way to sucessfully stay on top. As with all high-return investments, buying cryptocurrency is risky, and ICOs, like the ICO token sale behind USI Tech, are riskier still

The blockchain technology is already prevalent in the music industry. The music you listen to at home or in dance clubs will never be a pirated version again. The blockchain technology will protect the music industry from piracy and will ensure that the artists get properly paid for their hard work. It will develop a new ecosystem where there will be transparency. In this ecosystem, both the producers and artists will benefit. There won’t be any issues regarding music copyright and royalty payments will be paid automatically to the artists. So, the artists will have more control over their music and they will be the ultimate rightful winners in this music business.

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